Canada has announced the income tax thresholds for 2026, and your tax bracket will change slightly next year.

The Canada Revenue Agency (CRA) revealed the new federal income tax brackets, adjusted for inflation, this week. While federal tax rates are the same, the income thresholds for each bracket have shifted.

According to the agency, in 2026, the indexation increase will be two per cent, which is lower than the 2.7 per cent increase in 2025.

This is how much income tax you’ll have to pay next year based on your bracket:

Less than or up to $58,523 — 14 per cent

Between $58,523 and $117,045 — 20.5 per cent

Between $117,045 and $181,440 — 26 per cent

Between $181,440 and $258,482 — 29 per cent

$258,482 and over — 33 per cent

In July, Canada cut the lowest marginal personal income

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